Munich Re’s Profits Down 19% for First Quarter
The world's second-biggest reinsurer, Munich Re, hit its goal goal of making up to 3.4 billion euros ($5.2 billion) in net profit despite a 19 percent decline in the first quarter, missing analysts' estimates as falling equity prices and increasing price pressure.
Munich Re's shares fell after release of the quarterly figures. Traders focused on a decline in revenue and a surprisingly high claims burden compared with rival Hannover Re's results earlier this week.
Growing competition for premiums was set to continue but would not throw Munich Re off its full-year goals, it said.
Despite the greatly increased volatility on the capital markets and the growing pressure on prices in reinsurance, we aim to achieve a profit of 3.0 to 3.4 billion euros in 2008," finance chief Joerg Schneider said in a statement on Thursday.
Published on May 8, 2008
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